MF industry folio count rises 9 pc in FY20 on robust performance of Axis MF, ICICI Pru MF

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Published: July 21, 2020 5:58 PM

Further, Axis MF saw it investors account rising by 55 per cent to 60.11 lakh, while that of Mirae Assets MF folio numbers climbed 84 per cent to 25.74 lakh.

Investor account in equity oriented schemes surged by over 15 lakh to 6.44 crore in FY20 from 6.29 crore in FY19.Investor account in equity oriented schemes surged by over 15 lakh to 6.44 crore in FY20 from 6.29 crore in FY19.

Mutual funds industry has witnessed a 9 per cent growth in folio count to nearly 9 crore in 2019-20 on the back of addition in investors account by several fund houses including Axis MF and ICICI Prudential MF.

Industry experts said addition of folios indicates investors’ maturity and understanding about market risks associated with the mutual fund schemes.

Acording to data from Association of Mutual Funds in India,?the number of folios with 45 fund houses rose to 8.97 crore at the end of March 2020 from 8.25 crore in March 2019, registering a growth of 9 per cent.

Of the 45 players, most of the mutual funds witnessed an addition in folios and only 11 saw a decline in investors account.

Besides, data of few funds including Kotak Mahindra MF and JM Financial MF was not available.

Folios are numbers designated to individual investor accounts. An investor can have multiple folios.

Among the top five fund houses in terms of assets under management — SBI Mutual Fund (MF), ICICI Prudential MF, HDFC MF, Aditya Birla Sun Life MF and Nippon India MF– all of them witnessed an addition in folio count barring Nippon India MF.

ICICI Prudential MF reported a 22 per cent jump in folios to 93.84 lakh in 2019-20, SBI MF posted a 9 per cent increase to 85.71 lakh, HDFC MF saw a 3 per cent growth to 94.26 lakh and Aditya Birla Sun Life MF folio number rose 1 per cent to 71.86 lakh.?

However, Nippon India MF saw a 2 per cent drop in folio numbers to 88.99 lakh.

“We believe the robust growth in folio count seen over the last financial year is largely a result of our relentless digital focus, increased investor awareness levels and our ability to deliver better investment experience across market cycles and asset classes with zero defaults over the past two decades,” Nimesh Shah, MD and CEO, ICICI Prudential MF, said.

“All of these factors have rendered investor confidence which translated into improved customer acquisitions,” he added.

Further, Axis MF saw it investors account rising by 55 per cent to 60.11 lakh, while that of Mirae Assets MF folio numbers climbed 84 per cent to 25.74 lakh.

Swarup Mohanty, CEO, Mirae Asset Investment Managers said, “this is a business of simplicity and continuity. That starts with the addition of investors. Our view has been that once we are able to give our partners and investors a good investment experience, they would reward us with better wallet shares”.

In addition, DSP MF’s folio numbers surged by 6 per cent to 57.5 lakh.

Besides, smaller players including Edelweiss MF, PPFAS MF, Canara Robeco MF, Invesco MF, Mahindra MF, Indiabulls MF, IIFL MF, LIC MF and Shriram MF also saw an increase in their respective folio numbers.

On the other hand, investors account of UTI MF fell by 1 per cent to 1.09 crore. However, the fund house remains the largest player in terms of number of folio counts.

Investors account of Franklin Templeton MF declined by 3 per cent to 37.5 lakh.

In addition, IDBI MF, Sahara MF, Essel MF, HSBC MF, BOI AXA MF, Principal MF, BNP Paribas MF and L&T MF also saw a drop in investors account.

Overall, the industry added nearly 73 lakh folios in 2019-20 compared to 1.13 crore investors account in 2018-19, 1.6 crore accounts in 2017-18, over 67 lakh folios in 2016-17 and 59 lakh in 2015-16.

However, the pace of growth in folio numbers dropped in 2019-20 as compared to preceding two fiscals.

Industry experts attributed the trend to decline in investors account in debt-oriented schemes as they were spooked by credit events in fixed income market.

Investor account in equity oriented schemes surged by over 15 lakh to 6.44 crore in FY20 from 6.29 crore in FY19.

However, debt-oriented scheme folios count dropped by 45 lakh to 71.78 lakh.

Within the debt category, liquid funds continued to top the chart in terms of number of folios at 18.15 lakh, followed by low duration fund at 9.64 lakh fund houses.

The mutual fund industry has assets under management (AUM) of Rs 22.26 lakh crore at the end of March this year, as compared to Rs 23.8 lakh crore in March 2019.

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